Government's cutback measure 'not enough'<\/p>\n
JAKARTA (JP): Economist Djisman S. Simanjuntak said yesterday
\nthe government's retrenchment program was good in terms of cost
\nsaving but further measures were needed.<\/p>\n
\"It is a good move, but it is not good enough. The most
\nimportant thing is to reduce the consumption of imported products
\nto curb the growth in the current account deficit.\"<\/p>\n
In addition, household consumption on imported products should
\nbe lowered,\" said Djisman of the Institut Prasetia Mulia (IPM)
\nmanagement school.<\/p>\n
\"It is also important to increase exports and productivity,\"
\nDjisman said on the sidelines of a business forum held by Bank
\nBumi Putera.<\/p>\n
Yogyakarta's Gadjah Mada University economist Tony
\nPrasetiantono said the rescheduling of some big projects would
\nimprove the macro economy.<\/p>\n
\"Of course the government's move will have some risks like
\nslower economic growth and unemployment... but it is good,\" Tony
\nsaid as quoted by Antara.<\/p>\n
The government announced last week that it would postpone or
\nreview government and related projects worth US$38 billion to
\ncope with the sharp drop in the rupiah against the U.S. dollar.<\/p>\n
The rupiah and other Southeast Asian currencies have been
\nunder attack following the devaluation of the Thai baht in early
\nJuly. The rupiah has depreciated by about 20 percent against the
\nU.S. dollar since then.<\/p>\n
Djisman estimated that economic growth would grow by only
\nabout 5 percent this year as a result of the cutback measures as
\ncompared to 7.8 percent last year.<\/p>\n
He said that investment would grow by 7 percent or 8 percent
\nthis year, down from 11 percent last year.<\/p>\n
Miranda S Goeltom, an economist and expert at the office of
\nthe Coordinating Minister for Finance and Development Supervision
\nalso hailed the government's rescheduling measure.<\/p>\n
But she urged the government to improve information
\ntransparency to the public. Goeltom said the recent currency
\ncrisis was partly caused by a lack of information.<\/p>\n
\"The government should tell the public what sectors to
\nderegulate... and what action to take. This is aimed at
\nincreasing information transparency to the public,\" she said.<\/p>\n
Otherwise, she said, the public would continue to use
\nspeculative practices due to the lack of information on steps
\ntaken by the government. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/governments-cutback-measure-not-enough-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}